VICI Properties Lowered by Scotiabank on Caesars Lease Uncertainty

VICI Properties Inc. (NYSE:VICI) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

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On February 2, Scotiabank downgraded VICI Properties Inc. (NYSE:VICI) to Sector Perform from Outperform and chopped its terms people to $30 from $36. The steadfast pointed to the ongoing uncertainty tied to the Caesars Entertainment Regional Master Lease, on with signs that outer maturation whitethorn beryllium becoming much limited. While Scotiabank believes absorption tin yet onshore connected a workable solution, the deficiency of near-term clarity is apt to measurement connected the stock’s quality to summation momentum.

VICI is inactive a comparatively young REIT, having been created successful 2017 arsenic a spinoff from Caesars during its Chapter 11 restructuring. Since then, it has grown quickly, gathering retired a ample portfolio of casino existent property done sale-leaseback deals, merging with different large gaming REIT, and gradually expanding into different experiential assets. Today, the portfolio includes respective well-known casino properties alongside newer experiential investments, specified arsenic bowling and amusement venues.

The institution leases its properties backmost to operators nether triple-net agreements, with astir fractional of the rent tied to inflation. That operation supports highly unchangeable currency travel and provides built-in rent maturation implicit time.

From a fiscal standpoint, VICI remains connected coagulated footing. Its dividend payout ratio is astir 75%, and it maintains an investment-grade equilibrium expanse with leverage of astir 5.0x. That gives the REIT country to support investing. In summation to acquisitions, the institution besides provides superior to partners for spot upgrades and improvement projects, creating different root of dependable income.

VICI Properties Inc. (NYSE:VICI) has besides been accordant connected the dividend front. It has raised its dividend each twelvemonth since going public, astir precocious delivering its eighth consecutive yearly summation successful precocious 2025.

While we admit the imaginable of VICI arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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